![]() ![]() The implication being that race has a causal effect on college completion rates. According to government research, 56% of White 25- to 29-year-olds had completed a college degree in 2019, compared to just 36% of black individuals of the same age. The example of ice cream and crime rates is a positive correlation because both variables increase when temperatures are warmer. If two variables are negatively correlated, a decrease in one variable is associated with an increase in the other and vice versa. Educational Attainment and Race: Social scientists have focused on identifying which variables impact educational attainment. A negative correlation means that the variables move in opposite directions.It is a fun conversation piece but probably not something a serious financial advisor would recommend as an investment strategy for clients. Since the beginning of the Super Bowl era, the indicator has been accurate around 74% of the time, or 40 out of the 54 years, according to OpenMarkets. If we created a scatterplot of shoe size vs. In other words, knowing the shoe size of an individual doesn’t give us an idea of how many movies they watch per year. Super Bowl Indicator: In late January, there is often chatter about the so-called Super Bowl indicator, which suggests that a win by the American Football Conference team likely means that the stock market will go down in the coming year, whereas a victory by the National Football Conference team portends a rise in the market. The shoe size of individuals and the number of movies they watch per year has a correlation of zero.If shirt lengths are short, the market is bullish. If skirt lengths are long, the correlation is that the stock market is bearish. In research, you might have come across the phrase correlation doesn’t imply causation. Causation means that a change in one variable causes a change in another variable. Skirt Length Theory: Originating in the 1920s, the skirt length theory holds that skirt lengths and stock market direction are correlated. Correlation means there is a statistical association between variables.
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